NUMSA CALLS ON THE DEPARTMENT OF TRANSPORT TO STOP SUBSIDIZING PUTCO UNTIL IT PAYS WORKERS INCREASES
8 September 2022
Press statement
The National Union of Metalworkers of South Africa (NUMSA) is shocked that Putco management is threatening to dismiss over 1000 workers over a situation which they created because of their greed and selfishness. The management of Putco has been refusing to pay workers their deserved bonuses and the wage increase of 6% which was secured in the last wage agreement in the bus passenger sector. NUMSA represents 1400 employees at Putco and we are dismayed by the arrogant stance taken by management.
Background
In 2020 the South African Road Passenger Bargaining Council (SARPBC) signed a collective agreement for a 6% increase and also the payment of the annual bonus. Putco is a party to the bargaining council and the increase applied to them as well. Unfortunately, because Putco management is driven by greed, they resisted implementing the increase and applied for a partial exemption, saying that they can only afford to pay 3% increase and not the full 6% increase. Since 2020 they have applied to the Exemptions committee of the SARPBC and they have been rejected twice. The latest appeal to the Exemptions committee was rejected in April of this year. NUMSA and other unions at Putco have consistently rejected Putco’s application for partial exemption because we know they can afford to pay the increase in full.
We were vindicated when the commissioner confirmed that indeed Putco management can afford to pay the increase. One of the reasons she rejected their application for exemption is because the management of the bus company had the audacity to plead poverty but rewarded its executives with a 7% increase. At the same time a whopping R60 million was paid to Carleo Enterprises, which is owned by an Italian family which owns 49% of Putco.
Putco has not accepted this ruling and wants to appeal again to the labour court to appeal this decision as well. This is what sparked the anger of workers which led to the current work stoppage.
The NUMSA General Secretary visited Putco offices yesterday, with the intention to persuade them that they must move from their inflexible position and accept in principle that they are going to pay what is due to workers. The union is prepared to negotiate a position where workers must be paid their money, and this could be phased in through a process that can be negotiated with workers, but the executive management and the CEO, chose to be extremely rude and arrogant. As a result the meeting collapsed as they walked out of the meeting without any solution.
We reject the intention by Putco to dismiss workers after they deliberately frustrated them. The union is left with no choice but to call on Transport minister Fikile Mbalula to intervene in the current impasse. The department of transport in our view cannot continue to pay and subsidize a bus company that is anti-worker, union bashing, and selfish to the extreme as clearly its senior management is only prepared to pocket every rand and cent of the cash flow of that company, and share nothing with workers.
If Putco, had their way, they would turn workers into slaves and make them work without receiving anything. NUMSA rejects this primitive and backwards management style, which bashes unions and workers. It is our stated view that workers are the producers of wealth. The bosses must know that there are no shortcuts to remain in business. Workers must be treated as complete human beings because worker rights are human rights. The arrogance demonstrated by Putco senior executive management must be condemned.
Clearly Putco management has adopted an inferior strategy of using the courts to strangulate poor workers. They have filed papers at the Labour court for an urgent interdict against the unions for the work stoppage. The matter will be heard today. We condemn the management of Putco for abusing the courts in this manner with a frivolous application. They should be engaging unions with the view of resolving this impasse, not launching applications in court. They are motivated by pure greed and it is disgraceful that they are threatening to dismiss over 1000 employees! We condemn them for their ruthless and uncaring attitude.
Aluta continua!
The struggle continues!
Issued by Irvin Jim, NUMSA General Secretary, 8 September 2022
